City-based Allahabad Bank is likely to finalise details and raise ₹320 crore through qualified institutional placements (QIP) by June 30 this year.
According to Rakesh Sethi, Chairman and Managing Director, Allahabad Bank, a government nod is being awaited after which the QIP process will be taken up. Necessary approvals from the Reserve Bank of India have already been obtained.
“Hopefully, we will be able to complete the process by June 30. Currently, we are awaiting the Government nod,” he told newspersons during a press conference to announce the 150{+t}{+h} Foundation Day Celebrations of the bank.
Allahabad Bank had in December last year obtained shareholders approval for a preferential issue of ₹400 crore to the Centre and a Qualified Institutional Placement (QIP) of ₹320 crore for shoring up its equity base.
According to Sethi, the bank does not plan any immediate fund-raising exercise post its QIP.
Following the slowdown in corporate credit because of the economic downturn, the now will be on retail credit, Sethi said. The bank, in 2013-14, was able to bring down bulk deposits by ₹5,000 crore.
“Our focus would be on retail credit and cross selling of products to our existing customers,” Sethi said.
The bank would also look to shore up its branch presence and focus on generating more business from semi-urban and rural areas. Currently, nearly 60 per cent of its 2,800 branches are in semi-urban and rural areas.
In 2013-14, Allahabad Bank’s total business stood at ₹3,31,000 crore, with deposits accounting for ₹1,90,000 crore and advances, ₹1,41,000.
Shares of the bank closed at ₹95.15, up by 0.26 per cent on the BSE on Wednesday.